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Cross Collateral
Auto Top-up Function
Binance
2020-08-26 08:27
When Auto Top-up function is enabled, if the current Loan-To-Value (LVT) ratio reaches the Margin Call Level, the available assets in your spot wallet will be used to supplement the collateral, i.e. transferred to your cross collateral, to bring your current LTV back to Initial LTV.
*Please note that there is still a chance of being liquidated even with auto top-up due to extreme market movements.
Please refer here for more information about Loan-To-Value (LTV) and Liquidation.

How to calculate Collateral Amount for Auto Top-up?

Assume Collateral/USDT Index Price is P:
Collateral Amount for Auto Top-up = (Loan Amount / P) / Initial LTV - Current Collateral Amount
Example:
On 2020-07-25 17:18:38 UTC, BTCUSDT Price Index is 11,569.82478777, you had a loan amount of 100 USDT with 0.01329077 BTC in collateral.
Suppose BTCUSDT Price Index falls to 9,405.02319, current accumulated interests is 0, your current Loan-To-Value (LTV) ratio reaches the Margin Call Level 80%:
LTV = (Principal + Interests) / Collateral Amount x 100%
= 100 USDT / 0.01329077 BTC x 100%
= 100 USDT / (0.01329077 * 9,405.02319) USDT x 100%
= 80%
Collateral Amount for Auto Top-up = (Loan Amount / P) / Initial LTV - Current Collateral Amount
= (100 USDT / 9,405.02319) / 65% - 0.01329538 BTC
= 0.0030671 BTC

The Execution of Auto Top-up

1. The asset balance of your spot wallet will affect the execution of Auto Top-up:
  • If your spot wallet balance > 0, the system will auto top-up the collateral to ensure that your current LTV to be restored to the initial LTV;
  • If your spot wallet balance = 0, the system will not perform auto top-up;
  • If your spot wallet balance is insufficient to bring back your account to the initial LTV, corresponding asset balance in your spot wallet will be used to supplement the collateral to recover the LTV of your account as much as possible (for example your collateral is BTC, there are BTC and BNB in your spot wallet, then all BTC in spot wallet will be transferred to your BTC collateral)
2. The number of times to auto top-up is controlled by configured threshold:
  • Auto Top-up Succeed: After the first auto top-up (automatic/manual) is successful, if the user meets the Auto Top-up conditions again, the system will automatically trigger the auto top-up, and there is no limit of attempts;
  • Auto Top-up Failed: When the first auto top-up is failed, another 6 attempts will be initiated at an interval of 12 hours each. In other words, if a user fails to auto top-up at 12:00, the next auto top-up time is 24:00, which will be executed 6 times in total. After reaching 6 times, Auto Top-up will no longer be executed. Unless the user performed a manual top-up and is successful or the Auto Top-up switch is reset, then the timer will be reset;
3. After the auto top-up is completed, you will be notified via short message service (SMS), e-mail.
*Notice. You agree that during your use of the Service, under certain circumstances (including due to personal network congestion and poor network environment), users may be unable or delayed to receive SMS or e-mail reminders. We reserve the right with no obligation to deliver notifications.

How to enable Auto Top-up

1. Click “Futures Wallet” from the drop-down list under “Wallet” after logging into your account.
2. Next, you will be able to see the “Auto Top-up” function in your futures wallet interface. Click to switch on the Auto Top-up for each collateral.
3. After the auto top-up is completed, the system will generate a LTV Adjustment History and mark the transaction type as ‘Auto Top-up’. You can view the record by clicking into the Transaction History page.

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